Stimulus Funds Go to States that Need Them Least

Monday, August 16, 2010

When the White House and Congress decided last year to stimulate the economy, they relied on existing federal spending formulas for distributing the $862 billion. The problem with that strategy was that it resulted in too much money going to states that had less need than others, based on their level of unemployment.

For instance, Florida ranks last in stimulus benefits per resident, according to ProPublica, even though it has the nation’s fifth-highest unemployment rate. Nevada has the worst unemployment—14.2%—but ranks 46th in stimulus benefits. California ranks 29th in stimulus help, while having the third highest jobless rate (12.3%).
Alaska is first in stimulus assistance, but its unemployment rate of 7.9% is well below the national average. South Dakota is second in help, but has only 4.5% unemployment.
-Noel Brinkerhoff
Jobless Rates No Factor for Stimulus Money (by Dennis Cauchon, USA Today)
How Much Stimulus Funding is Going to Your County? (by Jennifer LaFleur, Dan Nguyen and Joe Kokenge, ProPublica)


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